The great Depression by Parker, Kyle

Credit Expands

kylep2_ — 2023-11-14 15:19:58 UTC

A credit expansion is the part of an increase in the amount of money in a country's economy that includes bank loans and the money the government borrows to finance its activities

The government borrowing for budgetary support made it the main contributor to the credit expanse.

German Reparations

kylep2_ — 2023-11-14 15:20:04 UTC

The treaty of versailles would lead Germany to take the War Cause guilt, putting them in financial debt. They would have to pay the Allied powers about $132 billion gold marks which is about $33 billion in USD. Germany would experience inflations rates so high that their own money was barley able to pay off their reparation on October 3, 2010. Generating their own Great Depression.

Americas' Dominant Industry

kylep2_ — 2023-11-14 15:20:08 UTC

After WWI, Americas' industry begin to play a big part in European economic Affairs The economy was mired in recession in 1914 and war quickly opened up new markets for American manufacturers. In the end, World War I set off a 44-month period of growth for the United States and solidified its power in the world economy. So, when America would pull their Business out of Europe, Europeans would start to enter the Great Depression.

High Protective Tariffs

kylep2_ — 2023-11-14 15:20:12 UTC

A Protective Tariff is A tax imposed by one country on the goods and services imported from another country to influence it, raise revenues, or protect competitive advantages. America would be the reign force in the economic stat in Europe. They up the price of their exported goods so that they would gain from it. This is a normal act, however, they would begin to overtax the Europeans spiraling them into a the very start of the Great depression.

Stock Market Crash of 1929

kylep2_ — 2023-11-14 15:20:16 UTC

The Stock Market crash of 1929 is the reason America would pull their Industries out of Europe. Trying to salvage the last they could to jumpstart their economy again. Banks would have no money to give their clients as their funds were all spent in the stock market. When it crashes everyones money vanishes as well. This is the leading cause for America to join in the Global Great Depression.

High unemployment

kylep2_ — 2023-11-14 15:20:26 UTC

During the Great depression there were high unemployment. Because of the high unemployment they weren't able to bounce back right away as to make money you have to have workers who work for you to make their own money. The problem arises when you can't pay them so you have to lay them off. Which lead to the greatest amount of unemployment in history. About 23.9% or approximately 12,830,000 of people in the US where unemployed. The unemployment rate in Germany, Austria and Poland rose to 20% while output fell by 40%. Great Britain stood at 20% and France was at 5% unemployment rate.

Bank Failures/Collapse of Credit

kylep2_ — 2023-11-14 15:20:31 UTC

Due to the Stock market/Wall Street Crash of 1929, banks would begin to fail. Credit would also collapse as now one could pay off the credit they owed. In all, 9,000 banks failed--taking with them $7 billion in depositors' assets. And in the 1930s there was no such thing as deposit insurance--this was a New Deal reform. When a bank failed the depositors were simply left without a penny. The life savings of millions of Americans were wiped out by the bank failures.

Growth of The Nazi Party

kylep2_ — 2023-11-14 15:20:35 UTC

Germanys' reparations would lead to the growth of the nazi party. The great Depression caused the nazi party to become a prominent figure in Germany. Adolf Hitler would rise to power in Germany by Joining the Nazi party and becoming the leader. leading to one of the horrific and devastating events in history. In a time of panic and severe depression Hitler would give hope to Germany. He pinned the cause of the Great Depression on the jewish, which didn't even make up 2% of the German population. However because he was able to rise to power Germany would recover in some ways making it a dominating power going into WWI even if they were at a severe disadvantage.

Collapse of Product in World Trade

kylep2_ — 2023-11-14 15:20:40 UTC

The effect of high protective tariffs would lead to the collapse of product in world trade. The collapse was caused by many factor such as declining demand, escalating tariff and non-tariff trade barriers, increasing bilateral trade agreements, and international exchange rate policies. The contraction in world trade during the first phase of the Great Depression stands out as the strongest adverse shock to international trade in modem history. From 1929 to 1932 world import and export volume in the industrialized nations decreased about 30%.